UK defence, adjacent sectors see decade of export growth

Trade association ADS Group has reported that UK exports in the aerospace, defence, security, and space sectors rose by more than two-thirds in the past decade, demonstrating their growing role in the country’s economy. 

The association – which represents over 2,000 companies across these sectors – made the announcement to DSEI Gateway and other media during a launch briefing for its annual Facts and Figures report on 7 July. 

The report itself was released on 9 July and reveals that exports across the sectors totalled GBP50 billion in 2025. This accounts for 45% of the sectors’ collective turnover.  

The export totals reported for the individual sectors are: 

• Aerospace GBP30.6 billion (2025)  
• Defence GBP10.8 billion (2025, when calculated on a five-year average) 
• Security GBP13.6 billion (2025) 
• Space GBP5.5 billion (estimate, data covers 2022/23) 

These totals precede the UK Government’s recent changes to UK Export Finance (UKEF) – a UK Government-backed credit agency that provides financial support to exporters – on 30 June. The changes will see GBP50 billion allocated to defence exports specifically, to help incentivise international sales. 

Factors to watch 

While these figures would seem to be testament to the strength of the UK defence industry and its increasing contribution to the country’s economy, Aimie Stone – ADS Group’s Chief Economist – went on to highlight the following factors as contextual considerations: 

• Rising global debt as a potential risk to spending and investment 
• Multiple conflicts increasing demand but also uncertainty 
• High inflation placing pressure on margins 
• Political leadership uncertainty  
• Supply chain disruption  
• Labour and skills issues 

ADS Group’s CEO, Kevin Craven, told media that “despite [these factors], our industries continue to grow… So, against all these odds, we continue to invest, continue to innovate, and continue to deliver for our clients and for our country.”